We review the empirical literature that extends and tests the Hotelling model of the optimal depletion of an exhaustible resource. The theory is briefly described to set the stage for the review of empirical tests and applications. Those tests can be roughly divided into two broad categories —...

A model of pricing of natural-resource commodities that integrates financial and product markets is derived and tested. In the model, price-taking firms extract from a deposit of an exhaustible resource; production is risky, and investors own shares in the mine. Investors can diversify their risk...